Canadian court issues judgment against Dunkin' Brands Group

AP Photo/Toby TalbotDunkin' Brands Group Inc., the owner of Dunkin' Donuts and Baskin-Robbins brands, said Monday that a Canadian court ruled that it must pay a group of franchisees about 16.4 million Canadian dollars ($15.9 million), plus costs and interest.

CANTON, Mass. (AP) — Dunkin' Brands Group Inc., the owner of Dunkin' Donuts and Baskin-Robbins brands, said Monday that a Canadian court ruled that it must pay a group of franchisees about 16.4 million Canadian dollars ($15.9 million), plus costs and interest.

As a result, the Canton, Mass.-based company said it will increase its legal reserve for its current quarter. The company had previously reserved 4 million Canadian dollars ($3.9 million) for losses related to the lawsuit.

Dunkin' said the lawsuit was filed in 2003 by a group of Quebec Dunkin' Donuts franchisees based on events that took place 10 to 15 years ago. The court issued its judgment on Friday.

The company said it "strongly disagrees" with the court's decision and plans to appeal.

Its shares closed at $34.72 in trading on Friday. They are near the higher end of their 52-week range of $23.24 to $37.02.